Consolidated Communications Closes Inaugural $1.344 Billion Asset Backed Securitization and $1.5 Billion Revolving Warehouse Facility

Financing supports and accelerates Fidium’s growth plan and vision to become America’s favorite fiber provider

CONROE, Texas--(BUSINESS WIRE)--Consolidated Communications Holdings, LLC (the “Company” or “Consolidated”) today announced the closing of its inaugural fiber securitization transaction (the “Transaction”) consisting of asset-backed term notes (the “Notes”) totaling $1.344 billion, secured by all existing and future fiber-enabled customers across certain states and the fiber optic and network infrastructure to support these customers. Concurrently with the offering of the Notes, the Company also entered into a commitment for a $500 million variable funding note facility, subject to leverage tests and other customary drawing conditions. Additionally, an affiliate of the Company entered into a $1.5 billion secured, revolving warehouse facility, subject to leverage tests and other customary drawing conditions.

The Notes were issued in three classes consisting of $1.001 billion 6.0% Series 2025-1, Class A-2 notes, $152.8 million 6.5% Series 2025-1, Class B notes, and $189.7 million 9.4% Series 2025-1, Class C notes, each with an anticipated repayment date of May 2030. Collectively, the Notes have a weighted average coupon of approximately 6.5%.

"We are pleased to complete our inaugural asset backed securitization, which reflects the strong value of our fiber infrastructure and growing penetration across our footprint,” commented Fred Graffam, chief financial officer at Consolidated. “With favorable, long-term financing in place, we’ll continue to disrupt the market with our best-in-class fiber product, Fidium, while continuing to expand our fiber network.”

“I am more confident than ever in our future as a fiber-first Company,” commented Bob Udell, chief executive officer at Consolidated. “Having completed our go-private with Searchlight Capital Partners and British Columbia Investment Management Corporation at the end of 2024 and through this financing, we have solidified the future growth of Fidium and remain focused on unlocking new opportunities, fueling innovation, and empowering our teams to deliver on our vision to become America’s favorite fiber provider.”

The proceeds of the Transaction will be used to, among other things, repay existing indebtedness, and for general corporate purposes, including the Company’s growth initiatives and expansion of its fiber network.

Morgan Stanley & Co. LLC acted as sole structuring agent and lead left active bookrunner. Goldman Sachs & Co. LLC, Guggenheim Securities, LLC, Jefferies LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Santander US Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities, LLC acted as active bookrunners. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as counsel to Consolidated and King & Spalding served as counsel to the initial purchasers in the offering.

About Consolidated Communications

Consolidated Communications Holdings, LLC is dedicated to moving people, businesses and communities forward by delivering the most reliable fiber communications solutions. Consumers, businesses and wireless and wireline carriers depend on Consolidated for a wide range of high-speed internet, data, phone, security, cloud and wholesale carrier solutions. With a network spanning approximately 67,000 fiber route network miles, Consolidated is a top 10 U.S. fiber provider, turning technology into solutions that are backed by exceptional customer support. Learn more at consolidated.com.

Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are statements that could be deemed forward-looking statements, including, without limitation, statements containing the words “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” “plan,” “should,” “may,” “will,” “would,” “will be,” “will continue” or similar expressions and statements regarding the Company’s future results, strategy and operations as a private company. These forward-looking statements are based on the Company’s current expectations, plans, strategies and anticipated financial results and involve a number of risks, uncertainties and conditions that may cause the Company’s actual results to differ materially from those expressed or implied by these forward-looking statements, including, without limitation, significant competition in all parts of our business and among our customer channels; our ability to adapt to rapid technological changes; shifts in our product mix that may result in a decline in operating profitability; continued receipt of support from various funds established under federal and state laws; disruptions in our networks and infrastructure and any related service delays or disruptions could cause us to lose customers and incur additional expenses; cyber-attacks may lead to unauthorized access to confidential customer, personnel and business information that could adversely affect our business; our operations require substantial capital expenditures and our business, financial condition, results of operations and liquidity may be impacted if funds for capital expenditures are not available when needed; our ability to obtain and maintain necessary rights-of-way for our networks; our ability to obtain necessary hardware, software and operational support from third-party vendors; our ability to enter into new collective bargaining agreements or renew existing agreements; our ability to attract and/or retain certain key management and other personnel in the future; risks associated with acquisitions and the realization of anticipated benefits from such acquisitions; increasing attention to, and evolving expectations for, environmental, social and governance initiatives; unfavorable changes in financial markets could affect pension plan investments; and weak economic conditions. Many of these circumstances are beyond the Company’s ability to control or predict. Moreover, forward-looking statements necessarily involve assumptions on our part. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements that appear throughout this press release. Furthermore, undue reliance should not be placed on forward-looking statements, which are based on the information currently available to us and speak only as of the date they are made. Except as required by law, we disclaim any intention or obligation to update or revise publicly any forward-looking statements.